top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

Need Advise: Car Purchase and FICO Score and Rebuilding Credit

Collapse
X
Collapse
 
  • Page of 2
  • Filter
  • Time
  • Show
Clear All
new posts
Previous 1 2 template Next
    #1

    Need Advise: Car Purchase and FICO Score and Rebuilding Credit

    hello everyone. I know this topic gets posted a lot but bare with me. I need a car and the loan amount would be 18-21k. Here are some history:

    file for Bk back in 06/2001 and was discharged on 07/2001.

    Since then, I haven't applied or got into anymore credit problems. I have a student loan that I am repaying for the last 3-4 years with no miss in payment.

    Last month on Jan 23, I decided to get a FICO score and it was 636 which I thought, wow, thats great for the situation. But then today when I signed up for FICO watcher, it says 613 so it went down 23 points in 2 week. I am kinda disappointed as I haven't done anything since then except do a correction on the credit report.

    On the FICO score of 636, I had a few negative factors:

    1. Serious delinquency or derogatory indicators/remarks, and public record or collection information is being reported on your credit file:

    which is the bk

    2. There is evidence of multiple accounts with missing payments or having derogatory indicators/remarks reported:

    it is saying i have 5 accounts that are revolving, bad debt/collection/120+ days past due

    I have went ahead and sent them a correction letter stating that I do not have these account as revolving and should be included in the bk.

    Additional information is that I make about 67k a year or roughy 3700 per month after taxes is taken care of. I don't have any car payment or house payment. No credit card whatsoever. I have tried to apply for 1 or 2 card but got deny. It was a secure card too. One from bank of america (rejected because of BK record) and one from wells fargo (rejected because it was included in the bk) and one from capital one (also in bk but they stated they didn't do a credit check). Anyways, here are a few questions?

    1. why did my score drop so much in such a short amount of time?
    2. what is the best way to build credit? I think i read a lot of threads about household bank? i am thinking of applying with them and see what they can offer.
    3. where can I get a car loan for that amount? e-loan? what kind of interest would i get?
    4. I have liquid cash of 8k-10k in the bank, would that help any? I don't want to use all of it but will put some cash down.
    5. Would getting a car loan help in the long run so that by the end of this year or next help in buying a house

    Any advise is much appreciate and hopefully after all the errors has been corrected, my score will go up. Thanks for any advise.
    Tags: None
    #2
    The actual FICO score you purchased is correct. Other credit monitoring services like ficowatcher and truecredit are just estimates. (maybe StaciMM can chime in--she explains it much better) As far as the car. I purchased a new vehicle for $17K just a couple weeks out of bk. I only put down $1500 and my scores were in the upper 500s. My rate is 14.5%, but I am sure you can do much better! Good luck.

    Comment

      #3
      A score from anyone but FICO may be a different measure, and therefore a different score.

      Beyond that-you have scores from 3 reports. The FICO Scorewatch is Equifax, so if your initial report was from another bureau, its not unusual that they are different. Beyond that-the score is constantly changing, as your credit file changes.
      Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision.

      Comment

        #4
        Originally posted by sobroke
        The actual FICO score you purchased is correct. Other credit monitoring services like ficowatcher and truecredit are just estimates. (maybe StaciMM can chime in--she explains it much better) As far as the car. I purchased a new vehicle for $17K just a couple weeks out of bk. I only put down $1500 and my scores were in the upper 500s. My rate is 14.5%, but I am sure you can do much better! Good luck.
        so the FICO score that I purchased back in 1/23/2006 is the correct FICO score? and not the score monitoring service? I feel a lot better now. Hopefully its true or else I'll be sad again.

        Anyways, thats good to hear that you got a new car, congrats where did you get the loan from?

        well hopefully more will chime in and give me some advise. I was thinking of getting a car loan through eloan for 20k or so. Anyways, thanks for your comments.

        Comment

          #5
          Originally posted by StaciMM
          A score from anyone but FICO may be a different measure, and therefore a different score.

          Beyond that-you have scores from 3 reports. The FICO Scorewatch is Equifax, so if your initial report was from another bureau, its not unusual that they are different. Beyond that-the score is constantly changing, as your credit file changes.
          I got the FICO score from myfico and purchase the FICO score through Equifax. So the FICO scorewatch is correct then at 613 cause it is from equifax? This is what it shows:

          Your latest fico score:

          TransUnion=???
          Equifax = 613
          Experian = ???


          at the bottom it shows this:

          Your Fico scores:

          Equifax= 613 --------2/8/2006
          = 636 --------1/23/2006

          So which one is correct? 613?

          Comment

            #6
            also when i should i get the other 2 FICO score? now or wait til they correct the item that I disputed? thanks.

            Comment

              #7
              Why do you need to know your scores? I got my loan through Americredit. They are bk friendly. I will refinance my loan once everything gets corrected on my cr.

              Comment

                #8
                If you're getting ready to buy a home, it can be useful to know your scores ahead of time. For anything else, it really isn't important. Car loans are not likely to be 100% score driven. They're also going to look at job stability, down payment, etc.
                Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision.

                Comment

                  #9
                  okay well I got the loan approved and this is what I got. Loan amount is 20k. Going through eloan.com, they directed me to roadloan which gave me 14.79 percent or 420 per month for 72 months. Is that a good rate? Do you guys think I can do better than 14.79? I was hoping the payment each month would be around 350-400. Anyways, let know what you think and if possible recommend some places. Thanks.

                  Comment

                    #10
                    I don't think that is a horrible rate for your circumstances. Just make sure you aren't late on any payments and look into refinancing the vehicle in 6 months or so. That is what I was advised on doing. Your scores should jump significantly within that time period. Congrats!

                    Comment

                      #11
                      I think you can do better. I got a 14,000k loan through Chrysler Financial at 11.5%. Plus, because I financed through the dealor I got 5k in rebates on my car

                      Comment

                        #12
                        Its best to shop around for that best interest rate..... Really you shouldn't have any trouble getting a loan... your credit is really better now than it ever has been - "your debt free"...
                        They may try to start you at a high interest rate, just tell them no thanks, your sure someone else will go lower than that, and they usually come across...

                        A short history of good payments will also put you in a position to buy a home again real quick....6-9 months, maybe a year.... and with a down payment you can buy a home immediately after bankruptcy..... I did.
                        Minny

                        "It's amazing the paths that our feet sometimes follow in life".

                        My suggestions are from "personal experience" and research only. Do not consider this as legal advice. Each bankruptcy case is different.

                        Comment

                          #13
                          I too would shop around. We had a boat load of debt already when we traded our old bomb and bought our newest vehicle. Chrysler Financial financed us at a slightly higher rate than we woulda got if we hadn't had so much debt.

                          You are 4 years post BK, almost 5 now. With good credit and payment history since. Your score isn't too shabby either. You should be able to do better on a car loan.
                          Filed Ch 7 - 09/06
                          Discharged - 12/2006
                          Officially Declared No Asset - 03/2007
                          Closed - 04/2007

                          I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

                          Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

                          Comment

                            #14
                            well I got a updated FICO score and since I corrected some mistake on the report, my score jumped up to 648 now. I am definitely going to reapply for an auto loan and see what kind of interest I can get. thanks for you advise. good thing i didn't use the loan

                            Comment

                              #15
                              just to give you guys an update, I applied at lendertree which applied at different loan companies and the best rate I got was from capital one auto. I got a 11.95 percent so it was an improvement from roadloan by 2 percent. Its nmot much but its something anyways, just want to update everyone. There is life after BK

                              Comment

                              Previous 1 2 template Next

                              bottom Ad Widget

                              Collapse
                              Working...
                              X